Court freezes assets of disbarred barrister acting as McKenzie friend

On 31^st July 2023, HHJ Dight CBE sitting in the county court at Central London continued a freezing injunction, obtained without notice, against Katrina McCarthy. The application was made by Notting Hill Genesis, a leading housing association, in support of its claim against Ms McCarthy for inducing the breach of contract of one of its tenants. The successful application is a reminder of the county court’s jurisdiction to grant freezing order relief in support of claims that are also within its jurisdiction. Indeed, HHJ Dight CBE was able to hear Notting Hill’s without notice application and make an order on the same morning the application was issued, almost immediately after the relevant facts were uncovered by Notting Hill’s officers.

In the proceedings, Notting Hill claims that Ms McCarthy – a disbarred barrister acting as its tenant’s McKenzie friend – tortiously induced the tenant to start paying his rent directly into her own bank account. She had represented to the tenant that she would then transfer the funds into a ‘court rent account’ so that he could ‘offset’ his rent whilst a disrepair dispute with Notting Hill was resolved. The tenant ceased paying rent in 2019 and, by the time a possession order was obtained against him in June on mandatory grounds, arrears of over £23,000 had accrued. It was only after the possession hearing (at which the tenant was represented by Ms McCarthy as his McKenzie friend) that Notting Hill discovered what had been happening. Notting Hill also claims equitable remedies in respect of alleged breaches of trust.

Despite being served with the order and indicating to the court that she intended to resist it, Ms McCarthy failed to attend the return hearing. HHJ Dight CBE refused a request (made by email without evidence) to adjourn the hearing and was satisfied that Ms McCarthy had breached various provisions of the order relating to the provision of information and an affidavit. Continuing the order, HHJ Dight CBE also ordered Ms McCarthy to pay Notting Hill’s costs (including those of the return hearing on the indemnity basis) and to make a payment on account of £10,000. Ms McCarthy has until 16^th August to respond to the claim.

Tom Morris acted for Notting Hill Genesis, instructed by Liam Hale of Winckworth Sherwood LLP.